Fixed Price vs. Blended Strategy: What’s Best for Budget Certainty?

Unpredictable power costs can make planning for your business challenging. When it comes to purchasing energy, what provides more budget certainty: a single point-in-time fixed price contract or a flexible buying strategy?

Fixed point-in-time price contract

With a fixed price contract, you have budget certainty for the length of your term. However, at the start of each new contract, you must go back to the marketplace and get a new price. The graph below shows how this type of purchasing strategy may lead to long-term budget fluctuations and uncertainty.

Flexible buying strategy

With a flexible buying strategy, you can purchase small percentages of load over time based on market activity, which combines both fixed and index pricing. The graph below demonstrates how this can successfully provide longer term certainty and help your business budget for the future.

Learn More about How Purchasing Strategies Perform Across Varying Market Conditions.